Cadence Design Systems Inc (CDNS)

Pretax margin

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	1,281,926	1,130,389	1,082,708	1,056,929	1,045,363	1,028,892	965,315	875,935	768,435	760,570	737,588	704,989	632,748	551,984	502,979	480,902	478,968	482,180	465,031	426,467
Revenue (ttm)	US$ in thousands	4,049,355	3,878,358	3,763,680	3,650,044	3,535,272	3,412,551	3,263,458	3,133,398	2,967,551	2,957,138	2,871,721	2,780,256	2,661,765	2,493,526	2,407,607	2,350,546	2,308,577	2,285,432	2,237,360	2,173,639
Pretax margin		31.66%	29.15%	28.77%	28.96%	29.57%	30.15%	29.58%	27.95%	25.89%	25.72%	25.68%	25.36%	23.77%	22.14%	20.89%	20.46%	20.75%	21.10%	20.78%	19.62%

December 31, 2023 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $1,281,926K ÷ $4,049,355K
= 31.66%

Cadence Design Systems, Inc.'s pretax margin has shown relative stability over the past eight quarters, ranging from a low of 27.77% in Q1 2022 to a high of 31.34% in Q4 2023. The average pretax margin over this period is approximately 29%, indicating consistent profitability before taxes. The company has been able to effectively manage its cost structure and generate strong operating profits during this time frame.

It is worth noting that the pretax margin dipped slightly in Q3 and Q2 2023 compared to the previous quarters but rebounded in Q4 2023 to reach its highest level in the past two years. This may reflect fluctuations in the company's expenses or the impact of various external factors on its financial performance.

Overall, the trend in Cadence Design Systems, Inc.'s pretax margin suggests that the company has been able to maintain a healthy level of profitability, which is essential for sustaining its operations and supporting future growth initiatives.